North Carolina Down Payment Support Programs

Payments Gateway - The North Carolina Housing Finance Agency has two excellent programs for first-time Home Buyers. These systems are the Mortgage Credit Certificate along with the Down Payment Assistance System.

Should you qualify for one of those plans and also you buy a home and December 1, 2009, you can even be eligible for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who is a First Time Home Buyer? A First Time Home Buyer is someone who has not owned a home within the past three years. That is the exact same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with low and moderate incomes. All home owners can claim an itemized deduction. An MCC “reduces your tax liability depending on a percentage of the mortgage interest that you pay.

You can claim 20% of the interest you pay as a credit on your own federal income taxes, if you are eligible for the MCC. You can save up to .

Should you qualify for the MCC you'll have the ability to combine this with the $8,000 tax credit. This could reduce a buyer's tax liability by $10,000.

Who qualifies for an MCC is based on your own income as well as the cost of the home you're buying. Household income is defined as the “gross income of the mortgagor and every other individual expected to live in the dwelling who's 18 years old or older.”

House price limits that apply in Durham, Orange and Chatham Counties and the income are given below.

MCC Income Limits 1 Individual $61,500 2 Persons $61,500 3 Persons $70,500 4 Men $70,500

MCC Sales Price Limitations New Dwelling $220,000 Existing Residence $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that need help with their deposit and closing prices may be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The buyer just needs to pay and the load would pay around $8,000 of the remaining balance.

This plan has more rigorous income limits than the MCC program summarized above. Like the MCC application, it can be used together with the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The deposit assistance, nonetheless, can't be utilized in conjunction with the MCC. This really is an either or scenario.

House price limits that apply in Durham Orange and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Men $45,650 3 Persons $51,350 4 Men $57,050

Down Payment Support Sales Cost Limits New Dwelling $210,000 Existing Residence $210,000